In this video we talk about What is NEFT or National Electronic Funds Transfer? NEFT is a very useful tool when you’d like to send money to someone from your account by means of internet banking or mobile banking.
For NEFT, Reserve Bank of India pools all transfer requests from all banks in India and then facilitates batch wise transfer of money under a unique system known as Deferred Net Settlement (DNS).
Some of the features of NEFT are as follows:
1. Under NEFT, settlement of money between various participating banks takes place through batch transfer system. Generally Reserve Bank of India stipulates remittance within 2 hours of transfer.
2. Funds settlement takes place in the books of Reserve Bank of India via its Inter Bank Transfer Scheme. RBI communicates about the transfer of money to the remitting bank who in turn communicates about the transfer to the remitter. The transaction that are done via NEFT are final and irrevocable in all cases.
3. NEFT is available to all customer on 24x7x365 or 24x7x366 basis through their bank’s internet banking and mobile banking system. You can also go to your bank branch and initiate a transfer from there by filling up a suitable money transfer form.
4. The Minimum transfer amount for NEFT transaction is Rs 1 and the Maximum transfer limit amount is Rs 20,00,000. In case you’d like to send funds greater than Rs 20,00,000, then you need to make use of RTGS or IMPS.
5. While uploading this video, there is NO CHARGE/FEE for NEFT. However this may change in future, so make sure that you first enquire about transfer fee from your bank.
6. If a particular bank is not a participating member of Reserve Bank of India or the Bank has not enabled NEFT for its customers, then you won’t be able to send money to that particular bank via NEFT in any case.